The Staff Side of the National Council (Joint Consultative Machinery – NC-JCM), which represents central government employee unions, has demanded a minimum pay of Rs 69,000 in the memorandum submitted to the 8th Pay Commission on April 14. The demand is not just about a higher fitment factor, it reflects a deeper structural shift in how government salaries may be determined going forward.
More importantly, this proposal is part of a broader consultation process initiated by the government, under which stakeholders were invited to submit their views on key themes.
The Staff Side of the NC-JCM in its memorandum to the 8th Pay Commission outlined recommendations across eight themes. One of the most important among these is “pay matters”, which covers issues such as minimum pay, basic pay, annual increment, and pay matrix structure.
How the consultation process is shaping pay revision
As part of its preparatory exercise, the 8th Pay Commission sought inputs from employees, pensioners, and stakeholders through a structured questionnaire hosted on its official portal and the MyGov platform.
Under Theme 1 (Pay Matters), the Commission specifically asked stakeholders to share their views on basic pay, minimum pay, annual increment, pay levels and matrix, and maximum pay structure.
The Staff Side NC-JCM responded with a detailed memorandum, arguing that the current pay framework needs a fundamental reset to reflect rising living costs and evolving social realities. Importantly, the submission window for such inputs remains open until April 30, 2026, allowing wider participation in the process.
“Minimum Pay must be based on a scientific living wage formula covering Food, Housing, Education, Health Care, Transport and the Technological / Digital Needs. The Present system of treating a family as 3 Units should be dispensed with and the Family should be treated as 5 Units (employee 1 Unit, Spouse 1 Unit (No Gender Discrimination), 2 Children, 0.8 Units each of the parents 0.8 Units. This works out to a total of 5.2 Units (Rounded off to 5 Units),” the memorandum reads.
From 3 members to 5: The core shift in salary calculation
At the centre of the Rs 69,000 demand is a move away from the traditional 3-unit family model used in earlier pay commissions.
The Staff Side has proposed a 5-unit family framework, comprising:
Employee: 1 unit
Spouse: 1 unit
Two children: 0.8 units each
Dependent parents: 0.8 units
This change reflects the reality that many government employees support not just their spouse and children but also elderly parents. The memorandum highlights that such responsibility is also backed by legal provisions like the Maintenance and Welfare of Parents and Senior Citizens Act.
It further aligns with the Social Security Code, 2020, which expands the definition of “family” to include dependent parents, thereby strengthening the case for revising the wage calculation base.
Why this pushes minimum pay
| S. No. | Proposed Pay Scale | Existing Pay Matrix | Proposed 8th CPC Pay (3.833 fitment factor) |
| 1 | Pay Scale-1 (Existing Level 1) | ₹18,000 – ₹56,900 | ₹69,000 |
| 2 | Pay Scale-2 (Merger of Level 2 & 3) | ₹21,700 – ₹69,100 | ₹83,200 |
| 3 | Pay Scale-3 (Merger of Level 4 & 5) | ₹29,200 – ₹92,300 | ₹1,12,000 |
| 4 | Pay Scale-4 (Existing Level 6) | ₹35,400 – ₹1,12,400 | ₹1,35,700 |
| 5 | Pay Scale-5 (Merger of Level 7 & 8) | ₹47,600 – ₹1,51,100 | ₹1,82,500 |
| 6 | Pay Scale-6 (Merger of Level 9 & 10) | ₹56,100 – ₹1,77,500 | ₹2,15,100 |
| 7 | Pay Scale-7 to Pay Scale-13 (Level 11 to 17) | Existing Level 11–17 | To be retained with 3.833 fitment factor |
Using this revised family structure, the Staff Side has calculated a minimum pay of Rs 69,000 based on a scientific “living wage” formula.
The calculation includes food and nutrition expenses; housing (7.5% of total expenditure); fuel, electricity, and water (20%); education and skill development (25%); social obligations like festivals, marriage, and recreation (25%); and technology and digital needs (5%).
The memorandum emphasises that wages must ensure dignity, efficiency, and productivity, rather than merely meeting subsistence needs.
Food norms revised: A key cost driver
A major contributor to the higher wage estimate is the revision in dietary norms.
While earlier pay commissions relied on a 2700 kcal benchmark, the current proposal adopts the higher standard recommended by the Indian Council of Medical Research (ICMR), at around 3490 kcal, particularly for employees engaged in physically demanding roles.
The revised consumption basket includes:
Protein-rich food such as milk, eggs, meat, and fish
Monthly dairy consumption of 30–35 litres for a family
Fruits and vegetables
Other essentials such as spices and beverages
This recalibration significantly raises the estimated monthly expenditure, feeding into the higher minimum pay figure.
Fitment factor and broader salary impact
Based on the Rs 69,000 minimum pay, the Staff Side has proposed a fitment factor of 3.83 for revising salaries of existing employees and pensioners.
If accepted, this would mark a sharp increase compared to the 7th Pay Commission’s fitment factor of 2.57 and lead to substantial revisions across pay levels.
The recommendations also include:
Implementation from January 1, 2026
Extension of revised pay to pensioners, including those retired before 2026
Coverage of autonomous bodies and institutions
Beyond minimum pay: Structural reforms proposed
The memorandum goes beyond pay levels to suggest broader reforms increase in annual increment from 3% to 6%; merging of certain pay levels to reduce stagnation; limiting the gap between minimum and maximum pay to a 1:12 ratio.
These changes aim to create a more balanced and equitable pay structure while improving employee morale and career progression.
Economic impact: Burden or growth driver?
The Staff Side also counters the argument that higher salaries would strain government finances. Currently, salary-related expenditure accounts for around 13% of the Centre’s revenue expenditure .
However, it argues that pay revisions can stimulate the economy by increasing purchasing power, boosting consumption demand and enhancing tax collections.
In this framework, salary hikes are positioned as an investment in economic growth and human capital, rather than merely an expense.
What it means going forward
The Rs 69,000 minimum pay proposal highlights how the 8th Pay Commission process is evolving—from a routine revision exercise to a more consultative and data-driven approach.
With inputs being sought from multiple stakeholders and structured around key themes, the final recommendations are likely to reflect a broader consensus. The emphasis on a 5-member family model and living wage principle suggests that the upcoming pay revision could bring one of the most significant shifts in government salary structures in recent years.
Disclaimer:
This article is based on proposals submitted by the Staff Side of the National Council–JCM to the 8th Pay Commission. The suggested changes, including the Rs 69,000 minimum pay, 5-member family formula, and potential salary increase, are recommendations and have not been approved by the government. Final decisions will be taken by the 8th Pay Commission and the Union government.